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10 Tips for a Foolproof Discount Pricing Strategy

Discount pricing strategy is known as a type of promotional pricing strategy through which the original price of the product & service is decreased to increase the traffic of sales and moving inventory. People are attracted to those products whose price is low as compared to those products whose price is high. This is why people always love to make purchases with discount deals to buy more products. It would be best to calculate the discounts before purchasing the products so you can buy more amazing products at a very less price. Simply, make use of an online discount calculator that lets you know the exact discount price after applying the discount & sales tax on the particular product or service.

Tips for the Discount Pricing Strategy:

Below are some of the tips from which you can get an advantage to make appropriate discount strategies to increase the traffic of sales.

Make Effective Discount Strategies:

Give the discount offers on products & services to your customers on a seasonal basis because they can impact the bottom line so badly. This is because overusing the discounts can impact the value of your brand that you made from years of hard work. Before paying the bill for the products you shop for, calculate the discount to get an idea of how much discount you get from the total bill. It seems to be difficult but you can use the discount rate calculator that helps to calculate the size of the discount and the original price of the product.

Percentage Discount with Capped Amount:

Percentage discount with capped amount is another tip for the foolproof pricing strategy, which is commonly used with just two variables. This strategy is effective if you’re not selling the product at low prices and if you did it, then you will lose the margin on the less expensive products also. If you want to boost the sales of your products, then this strategy for discount pricing is the best for you. To get an idea of how much this strategy is effective for the growth of your brand it is important to calculate discounts on the products. You can consider the discount calculator to find the sale price and total discount depending on the initial price & percentage off discount.

Show off Your Differentiators:

It doesn’t matter what you are selling, but the important thing that you need to remember is that the price of the product should not be the only factor that makes you different from your competitor. Work on those factors that can help you make your company special. A marketing campaign could be a factor that requires your attention so that you can make a better discount strategy. Calculating the discount price or percent off discount would be a great option before setting up the pricing strategy. For ease, account the best sale percentage calculator that allows you to determine the percentage discount between two prices.

Bulk Discount Pricing Strategy:

Bulk discount strategy is also known as function discounts, this strategy is different from the quantity discounts by being business to business instead of business to customer. It requires effective planning such as where to keep the stock of products and how to temper the expectations for the sales. For this, the easiest way is to find the size of the discount on products on which you’re offering discounts. With the ease of an online discount calculator, you can get the size of the discount within a few seconds.

Competition-Based Pricing:

Competition based pricing strategy is suitable for businesses in almost every aspect. To provide discounts you need to check the price of a product of your competitor on which you want to provide the discount. Then calculate the reverse percentage of the product or size of the discount that your competitor is offering with the free assistance of an online discount calculator. In this way, you can easily set the price of the product slightly high or below your competitor’s price.

Discount Pricing on Events:

Have you ever heard about the discount shopping events such as Black Friday, Blessed Friday, and Cyber Monday sales? It is the discount pricing strategy where the company raises the prices of the products and also decreases the price when the product loses its popularity. This discount strategy is considered the best to bag innumerable customers. But before setting up the discounts on a different product it’s important to know how much the discount price is suitable for this product, which could be a difficult task. You can simply try the discount calculator that lets you know about the discounted price after applying the discount and sales tax on the product.

Demand Pricing:

Demand discount pricing strategy is also known as dynamic pricing and time-based pricing strategy. It works best when the selling price of the product or service fluctuates depending on the market nature & customer demand. You have the option to increase or decrease the rate of the product on which you are giving discounts as per the willingness of the customer to purchase the product. If it seems to be difficult then, you can use the free discount rate calculator that tells the selling price & total discount depending on the initial price and percentage off price. This demand discount pricing strategy will help you in gaining and retaining loyal customers.

Premium Pricing:

The premium discount pricing is considered to be the best strategy for the brands that launch luxury products or services in the market. Usually, the company sets the price at a high rate because they think that the customers will understand the brand is of high value and the products are exclusive. You can use the premium discount pricing strategy to make an impeccable brand reputation. However, you still need to set a suitable amount of discount on the product that is within the budget of the customer. For ease, make use of the discount calculator to know the discount percentage.

Geographic Pricing:

This discount pricing strategy can be used when you want to ship products outside the country. It will also help you in adjusting the selling price of the product depending on the location of the customers. You can also cover the shipping expenses by using this strategy. Your brand will boom only if your customer likes the product that you’re selling and is willing to pay for the product in the respective geographical location. The discount for this type of discount pricing strategy can easily be calculated with the use of a discount calculator.

Loyalty Member Discounts:

In this strategy offering discounts to your loyal customers is a great way to show your customers that you value them especially when you are running a small business setup. It will help you in encouraging your customers to buy the products from your brand whenever they’re shopping. You can offer your loyal members a suitable discount price for the product they purchase from you. You can give them a discount when they make a certain number of purchases. You can decide to offer a discount on the product or service at your outlet or you can discount them on certain products. If you’re confused about the discount pricing, then you can account for the discount calculator to perform the discount calculations.

How to Calculate the Discount Price Manually or with Discount Pricing Strategy:

Below are the steps to follow to calculate the discount price of the product:

  • The first step to calculating discounts is to convert the percentage of the product to a decimal.
  • Then, multiple the original price by the decimal.
  • Now, subtract the discount from the original price of the product.

Instead of following this procedure to determine the discount price of the product you can use the discount calculator that estimates the discount price of the product and how much money you have saved after shopping.

Discount Calculator:

A discount calculator is an online website-based calculator that helps you in determining the discount price of the product within a few seconds. It also calculates the size of the discount for the product that you buy. Apart from this, the best sale percentage calculator computes the reverse percentage, original price of goods & services after applying discounts. As a buyer, you can make use of this discount calculator to know the sale price & total discount depending on the initial price and a percentage off. The best part is that you can perform the discount calculation for free with this amazing online calculator.

Conclusion:

We have written the best tips that you need to work on for a foolproof discount pricing strategy. By working on these tips you will surely develop an outstanding discount strategy through which you can increase the sales of your company. We also mention how to calculate the discount price manually and with the use of a discount rate calculator. Whenever you develop a new strategy for discount prices, you must calculate the discount on products. If you don’t know how to calculate it then, you get the advantage of using the discount calculator to perform the discount calculations.

About author

Richa Pathak is Founder & Editor at SEM Updates – The Digital Marketing Magazine. She is an emerging digital marketing influencer, a creative consultant & a corporate trainer. With a decade of experience in working with B2C & B2B brands across the globe, she is also a featured author in top-10 marketing magazines globally. She offers various consulting, training, & mentorship programs to share her knowledge. Richa's principle - Plan, Execute, Learn, Implement, Repeat! Digital marketing is Richa's passion & love. She is an innovator & wants to explore more, learn more, try different tools, hacks with various campaigns. She loves reading non-fiction books and does nature photography.

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